Global banks Deutsche Bank and Standard Chartered are collaborating on a groundbreaking solution that could revolutionize cross-border transactions in the world of digital currencies. They are currently testing a network called the Universal Digital Payments Network (UDPN), which has the potential to transform blockchain-based transactions.UDPN is a permissioned blockchain system that aims to facilitate seamless transactions between various digital assets, including stablecoins and central bank digital currencies (CBDCs). In a cross-border currency transfer scenario, the sending institution converts the value into a token, which is then transferred into a smart contract managed by UDPN. This smart contract releases the intended target currency without the need for a centralized messaging system like SWIFT.What sets UDPN apart is its role as an interoperability bridge between different blockchain networks. It addresses a crucial missing link in the blockchain and digital currency ecosystem. Additionally, UDPN ensures secure and regulated transactions by applying decentralized digital identity standards (DIDs) to participants.Deutsche Bank and Standard Chartered are not the only organizations involved in this initiative. The UDPN currently has around 25 participating organizations, including banks from various regions. These entities are conducting proof-of-concept tests concurrently, further advancing the industry’s efforts to streamline and standardize blockchain-based transactions.By focusing on interoperability and decentralized identity standards, UDPN aims to provide a compelling solution for digital currencies to communicate effectively and securely. This could pave the way for more efficient cross-border transactions in the future.
This News Article was automatically generated by Bob the Bot (AI)
This News Article was automatically generated by Bob the Bot (AI)
| Information | Details |
|---|---|
| Geography | Europe |
| Countries | 🇺🇸 🇦🇺 |
| Sentiment | positive |
| Relevance Score | 1 |
| People | None |
| Companies | Red Date Technology, Standard Chartered, SWIFT, GFT Group, Deutsche Bank |
| Currencies | None |
| Securities | None |
